Recentlly WA introduced new laws regarding rental properties, similar to the laws in the Eastern states, where the tenant appears to make the rules.
At one stage I owned 2 properties, one in Geelong and one in Brisbane, but I have since sold both.
With the Geelong property I had long term tenants, managed by a Real Estate company in Highton. Shortly after a new lease had been signed I was advised by that RE company that the tenants were moving out because of "Financial hardship" which I could not understand, as they both had good jobs and were good payers. Because of this "Financial hardship", I was advised, there would be no compensation to me for them breaking the lease, and they would be getting their bond money back as well.
A bit of detective work revealed that, rather than suffering "Financial hardship" this couple had purchased their own property, and from the same RE company that was managing mine! As a matter of principle I dug my heels in and off to VCAT (?) we went.
Eventually I won but the actions of this RE company were surely unconscionable?
With the Brisbane property I already was travelling, and in a Southern state, but Covid travel restrictions meant that when the tenant announced that she'd lost her job and would not be paying any more rent I was snookered, and could do little. Seems the Rental Tribunal, or whatever it's called, told her to simply stop paying, as there was nothing I could do!
Long story short it cost me $8000 and a lot of angst just to get her out. Holes in walls, broken doors, smashed tiles. "too bad".
With these new laws allowing only an annual rental increase, no ability to ban house-wrecking pets, allowing minor (define 'minor') modifications to the property, and increased difficulty in evicting tenants I certainly will never own another rental property.
I'm sure that I'm not alone in this stance, so perhaps the supply of rental properties will decline even further?
Perhaps some people deserve to live in tents. Cheers
Many years ago my wife and I rented our home to a person with excellent references, it turned into a bloody nightmare, the tenant did wilothewisp, agent didn't notify us until a month after he vacated cost us thousands to get it back into livable condition.
When we inspected found he had turned the power of to a fridge full of meat, laundry full of dirty flyblown nappies, you can imagine the smell, and walls graffitied.
After an enormous amount of work we got the place livable and sold it.
Will NEVER rent again.
smwhiskey said
02:05 PM May 27, 2023
No surprise that according to a recent REIQ survey reported that > 60% of landlords were considering selling because of current or proposed laws that will negatively impact them.
Hard to find good tenants who will look after the place as if they own it, although some owners live
like pigs but equally as hard to get a good property manager.We've ad our share of both and have now
settled with rentals via DHA.
There are lots of reporting on TV about landlords increasing the rent by some phenomenal amounts. What
we don't get is the reason why. I suspect it's either greed or a need to increase their own income in order
to meet the mortgage rate increases. I do not think it is fair that the tenant should pay extra rent for the
landlord's owner occupied property. Fair enough for the rental. Also looks like these rentals must be off contract.
Whenarewethere said
03:30 PM May 27, 2023
I reduced the rent to the level tenants requested during Covid to help. After a few months they suddenly left.
I don't have any issues making up for the shortfall in income.
dogbox said
03:43 PM May 27, 2023
real estate is an investment that over a period of time should give you a healthy return, unfortunately it is not all peaches and cream and you can get bad tenants and lazy agents but with our negative gearing laws you should come out Infront, the tax benefits can be very helpful to some people.
any benefits that the government allows thru taxation will be returned to them thru capital gains tax when you sell, so a big win, win situation.
what Victoria has just done is discouraged people from buying a second house as they have imposed a tax, which would have been passed on to the renters but they have changed the laws and it looks like cost will not be able to be passed on, the RBA can raise interest rates every month but landlord can only increase rents annually and if the tenants don't like the amount they head for the tribunal to appeal.
will the government be spending money to build low-cost housing? i think they have created a fast buck gain with long term losses wait till all the new migrants get here!
-- Edited by dogbox on Saturday 27th of May 2023 03:44:22 PM
deverall11 said
08:24 PM May 27, 2023
Here's something to think about:
SAM MCMAHON CLP SENATOR FOR NORTHERN TERRITORY 1 RESIDENTIAL,
10 INVESTMENT
Ian Goodenough Liberal Moore, WA 2 residential, 5 commercial/investment 7
Nola Marino Liberal Forrest, WA 7 agricultural/investment 7
Karen Andrews Liberal McPherson, QLD 1 residential, 5 investment 6
This is just a small portion. The rest is freely available on the internet.
KA must have a husband that earns bucket loads of money in order to get loan
approvals for 5 investment properties. In 2017 was 33.
Wonder who is their property manager.
dogbox said
09:10 AM May 28, 2023
deverall11 wrote:
Here's something to think about:
SAM MCMAHON CLP SENATOR FOR NORTHERN TERRITORY 1 RESIDENTIAL,
10 INVESTMENT
Ian Goodenough Liberal Moore, WA 2 residential, 5 commercial/investment 7
Nola Marino Liberal Forrest, WA 7 agricultural/investment 7
Karen Andrews Liberal McPherson, QLD 1 residential, 5 investment 6
This is just a small portion. The rest is freely available on the internet.
KA must have a husband that earns bucket loads of money in order to get loan
approvals for 5 investment properties. In 2017 was 33.
Wonder who is their property manager.
how one disposes of their income should not concern other people as sooner or later those that invest in property, will be called upon to pay capital gains tax when they realize a profit, if people wish to invest in property that is their business. i would be more concerned about all the people who expect a free ride usually at the expense of some one who invested their money, an not spent it on flash cars, expensive clothes, all the big boys/girls toys or just down the club playing pokies ect ect if the government changes its tax policies in regards to investment properties it will cause a long term problem as rental properties dry up. whether a person has one investment property or ten they still have to be funded eventually they become positively geared and opens the door for further investments (have a feast, eat the chicken to-day, no eggs or chicks tomorrow)
Possum3 said
10:35 AM May 28, 2023
dogbox wrote:
(have a feast, eat the chicken to-day, no eggs or chicks tomorrow)
Very aptly put.
Gundog said
12:29 PM May 28, 2023
deverall11 wrote:
Here's something to think about:
SAM MCMAHON CLP SENATOR FOR NORTHERN TERRITORY 1 RESIDENTIAL, 10 INVESTMENT Ian Goodenough Liberal Moore, WA 2 residential, 5 commercial/investment 7 Nola Marino Liberal Forrest, WA 7 agricultural/investment 7 Karen Andrews Liberal McPherson, QLD 1 residential, 5 investment 6
This is just a small portion. The rest is freely available on the internet. KA must have a husband that earns bucket loads of money in order to get loan approvals for 5 investment properties. In 2017 was 33. Wonder who is their property manager.
Sir you have your biased blinkers on, when are you going to do the same to your Labor mates.
Here's a novel idea what about, doing something with all the vacant shops in main street australia, councils change the zoning laws to allow them to be residential, then the owners given an incentive to convert them to residential, if the owners won't comply, government's compulsory acquire them for low cost residential.
Whenarewethere said
12:43 PM May 28, 2023
I see an awful lot of empty commercial properties around Crows Nest areas, Sydney.
It would be good to see these properties zoning changed, but I can also see the way the properties were designed it will be very expensive to change to residential use & still nevertheless be a very poor environment to live in. In so many ways it would be better to knock down & start again, but that's many many years.
Even hotels are expensive to change to residential use.
Unfortunately no easy answers.
dogbox said
01:02 PM May 28, 2023
deverall11 wrote:
Here's something to think about:
SAM MCMAHON CLP SENATOR FOR NORTHERN TERRITORY 1 RESIDENTIAL,
10 INVESTMENT
Ian Goodenough Liberal Moore, WA 2 residential, 5 commercial/investment 7
Nola Marino Liberal Forrest, WA 7 agricultural/investment 7
Karen Andrews Liberal McPherson, QLD 1 residential, 5 investment 6
This is just a small portion. The rest is freely available on the internet.
KA must have a husband that earns bucket loads of money in order to get loan
approvals for 5 investment properties. In 2017 was 33.
Wonder who is their property manager.
you are sounding a little greenish. these people you have mentioned will probably never qualify for the OAP would you have any investment properties? do you have a bucket load of super an leave it to others to invest for you with all the tax benefits thrown in?
if not how will you fund your retirement?
MR KEATING started our compulsory super with a 6% contribution which we contributed to by giving up a cpi pay rise. so we should all (who worked) have some super to supplement your OAP if you qualify at some point in the future super will be classified as an asset an the OAP will be fazed out.
dogbox said
01:16 PM May 28, 2023
Whenarewethere wrote:
I see an awful lot of empty commercial properties around Crows Nest areas, Sydney.
It would be good to see these properties zoning changed, but I can also see the way the properties were designed it will be very expensive to change to residential use & still nevertheless be a very poor environment to live in. In so many ways it would be better to knock down & start again, but that's many many years.
Even hotels are expensive to change to residential use.
Unfortunately no easy answers.
the online shopping has had a big boost since covid, how long do you think it will be before all shopping is done online? just go to Coles or Woolies and see the people filling baskets for the online orders. at some point in the future it will all be done from a warehouse just like AMAZON and others, the big mega shopping centers will have be converted for some other use
deverall11 said
05:37 PM May 28, 2023
Gundog wrote:
.... Sir you have your biased blinkers on, when are you going to do the same to your Labor mates.
Here's a novel idea what about, doing something with all the vacant shops in main street australia, councils change the zoning laws to allow them to be residential, then the owners given an incentive to convert them to residential, if the owners won't comply, government's compulsory acquire them for low cost residential.
If you read the whole post, this is just a sample. Plenty of Labor as well. Not at the top
of the list. List is in descending order.
Cuppa said
05:42 PM May 28, 2023
There are far too many cowboys masquerading as Real Estate rental agents. Many promises not kept. Basics ignored.
One significant problem is that many agents, as well as the general public always assume that a property being rented out is an 'investment property' and or a tax break. It's easier that way to lump all landlords into the 'bad' & uncaring category, something I believe which has made it possible for some of these pro tenant & anti landlord laws.
I have no problem with 'bad' Landlords being made to provide habitable rentals, but as a landlord myself who claims no tax breaks & who's only rental property is our home - our 'Primary residence' I resent being lumped in together with the 'bad mob'.
We are lucky to have a good agent we trust though, & from the outset had a written agreement that he would remain the only agent, no passing tasks to others in the office, & all inspections to be conducted with a good friend of ours accompanying him. Not cheap at 10% but worth it.
dogbox said
06:03 PM May 28, 2023
cuppa you say you pay 10% and claim no tax breaks ,do you declare the income
cuppa you say you pay 10% and claim no tax breaks ,do you declare the income
It's a very modest property & with the rental our income remains under the tax free threshold. We live frugally, claim nothing & the rental supplements our savings which we live on. We are not required to to lodge a tax return. We submit a 'non-lodgement advice' however. We prefer this way to having to claim tax breaks for our expenses. It keeps our life simpler. We seek reliable long term tenants without raising the rent to a level where a tax return would be required.
We have had tenants in our 'primary residence' but are required to return to live in it ourselves for a 'reasonable time' in every six year period. This is why we have recently returned home & expect to remain here here until at least the end of the year. By doing so the ATO views our home as our primary residence & not an investment property & thus does not make us liable to pay capital gains tax if we ever choose to sell it.
Recentlly WA introduced new laws regarding rental properties, similar to the laws in the Eastern states, where the tenant appears to make the rules.
At one stage I owned 2 properties, one in Geelong and one in Brisbane, but I have since sold both.
With the Geelong property I had long term tenants, managed by a Real Estate company in Highton. Shortly after a new lease had been signed I was advised by that RE company that the tenants were moving out because of "Financial hardship" which I could not understand, as they both had good jobs and were good payers. Because of this "Financial hardship", I was advised, there would be no compensation to me for them breaking the lease, and they would be getting their bond money back as well.
A bit of detective work revealed that, rather than suffering "Financial hardship" this couple had purchased their own property, and from the same RE company that was managing mine! As a matter of principle I dug my heels in and off to VCAT (?) we went.
Eventually I won but the actions of this RE company were surely unconscionable?
With the Brisbane property I already was travelling, and in a Southern state, but Covid travel restrictions meant that when the tenant announced that she'd lost her job and would not be paying any more rent I was snookered, and could do little. Seems the Rental Tribunal, or whatever it's called, told her to simply stop paying, as there was nothing I could do!
Long story short it cost me $8000 and a lot of angst just to get her out. Holes in walls, broken doors, smashed tiles. "too bad".
With these new laws allowing only an annual rental increase, no ability to ban house-wrecking pets, allowing minor (define 'minor') modifications to the property, and increased difficulty in evicting tenants I certainly will never own another rental property.
I'm sure that I'm not alone in this stance, so perhaps the supply of rental properties will decline even further?
Perhaps some people deserve to live in tents. Cheers
Many years ago my wife and I rented our home to a person with excellent references, it turned into a bloody nightmare, the tenant did wilothewisp, agent didn't notify us until a month after he vacated cost us thousands to get it back into livable condition.
When we inspected found he had turned the power of to a fridge full of meat, laundry full of dirty flyblown nappies, you can imagine the smell, and walls graffitied.
After an enormous amount of work we got the place livable and sold it.
Will NEVER rent again.
No surprise that according to a recent REIQ survey reported that > 60% of landlords were considering selling because of current or proposed laws that will negatively impact them.
https://inqld.com.au/news/2023/05/24/landlords-consider-selling-up-in-response-to-rental-reforms/
Simon
like pigs but equally as hard to get a good property manager.We've ad our share of both and have now
settled with rentals via DHA.
There are lots of reporting on TV about landlords increasing the rent by some phenomenal amounts. What
we don't get is the reason why. I suspect it's either greed or a need to increase their own income in order
to meet the mortgage rate increases. I do not think it is fair that the tenant should pay extra rent for the
landlord's owner occupied property. Fair enough for the rental. Also looks like these rentals must be off contract.
I reduced the rent to the level tenants requested during Covid to help. After a few months they suddenly left.
I don't have any issues making up for the shortfall in income.
any benefits that the government allows thru taxation will be returned to them thru capital gains tax when you sell, so a big win, win situation.
what Victoria has just done is discouraged people from buying a second house as they have imposed a tax, which would have been passed on to the renters but they have changed the laws and it looks like cost will not be able to be passed on, the RBA can raise interest rates every month but landlord can only increase rents annually and if the tenants don't like the amount they head for the tribunal to appeal.
will the government be spending money to build low-cost housing? i think they have created a fast buck gain with long term losses wait till all the new migrants get here!
-- Edited by dogbox on Saturday 27th of May 2023 03:44:22 PM
SAM MCMAHON CLP SENATOR FOR NORTHERN TERRITORY 1 RESIDENTIAL,
10 INVESTMENT
Ian Goodenough Liberal Moore, WA 2 residential, 5 commercial/investment 7
Nola Marino Liberal Forrest, WA 7 agricultural/investment 7
Karen Andrews Liberal McPherson, QLD 1 residential, 5 investment 6
This is just a small portion. The rest is freely available on the internet.
KA must have a husband that earns bucket loads of money in order to get loan
approvals for 5 investment properties. In 2017 was 33.
Wonder who is their property manager.
how one disposes of their income should not concern other people as sooner or later those that invest in property, will be called upon to pay capital gains tax when they realize a profit, if people wish to invest in property that is their business.
i would be more concerned about all the people who expect a free ride usually at the expense of some one who invested their money, an not spent it on flash cars, expensive clothes, all the big boys/girls toys or just down the club playing pokies ect ect
if the government changes its tax policies in regards to investment properties it will cause a long term problem as rental properties dry up.
whether a person has one investment property or ten they still have to be funded eventually they become positively geared and opens the door for further investments (have a feast, eat the chicken to-day, no eggs or chicks tomorrow)
Very aptly put.
Sir you have your biased blinkers on, when are you going to do the same to your Labor mates.
Here's a novel idea what about, doing something with all the vacant shops in main street australia, councils change the zoning laws to allow them to be residential, then the owners given an incentive to convert them to residential, if the owners won't comply, government's compulsory acquire them for low cost residential.
I see an awful lot of empty commercial properties around Crows Nest areas, Sydney.
It would be good to see these properties zoning changed, but I can also see the way the properties were designed it will be very expensive to change to residential use & still nevertheless be a very poor environment to live in. In so many ways it would be better to knock down & start again, but that's many many years.
Even hotels are expensive to change to residential use.
Unfortunately no easy answers.
you are sounding a little greenish. these people you have mentioned will probably never qualify for the OAP
would you have any investment properties?
do you have a bucket load of super an leave it to others to invest for you with all the tax benefits thrown in?
if not how will you fund your retirement?
MR KEATING started our compulsory super with a 6% contribution which we contributed to by giving up a cpi pay rise.
so we should all (who worked) have some super to supplement your OAP if you qualify
at some point in the future super will be classified as an asset an the OAP will be fazed out.
the online shopping has had a big boost since covid, how long do you think it will be before all shopping is done online?
just go to Coles or Woolies and see the people filling baskets for the online orders. at some point in the future it will all be done from a warehouse just like AMAZON and others, the big mega shopping centers will have be converted for some other use
If you read the whole post, this is just a sample. Plenty of Labor as well. Not at the top
of the list. List is in descending order.
One significant problem is that many agents, as well as the general public always assume that a property being rented out is an 'investment property' and or a tax break. It's easier that way to lump all landlords into the 'bad' & uncaring category, something I believe which has made it possible for some of these pro tenant & anti landlord laws.
I have no problem with 'bad' Landlords being made to provide habitable rentals, but as a landlord myself who claims no tax breaks & who's only rental property is our home - our 'Primary residence' I resent being lumped in together with the 'bad mob'.
We are lucky to have a good agent we trust though, & from the outset had a written agreement that he would remain the only agent, no passing tasks to others in the office, & all inspections to be conducted with a good friend of ours accompanying him. Not cheap at 10% but worth it.
BTW here is the link for Gundog:
www.miragenews.com/ranked-how-many-properties-do-australian-545566/
Copy and paste.
It's a very modest property & with the rental our income remains under the tax free threshold. We live frugally, claim nothing & the rental supplements our savings which we live on. We are not required to to lodge a tax return. We submit a 'non-lodgement advice' however. We prefer this way to having to claim tax breaks for our expenses. It keeps our life simpler. We seek reliable long term tenants without raising the rent to a level where a tax return would be required.
We have had tenants in our 'primary residence' but are required to return to live in it ourselves for a 'reasonable time' in every six year period. This is why we have recently returned home & expect to remain here here until at least the end of the year. By doing so the ATO views our home as our primary residence & not an investment property & thus does not make us liable to pay capital gains tax if we ever choose to sell it.